Due to its high combinatorial complexity (i.e. for an N location ¹ period problem, (N!) solutions are possible) good heuristic techniques are necessary for DLP. Modern heuristic techniques namely genetic algorithms, tabu search and simulated annealing can be good candidates for this problem. Balakrishnan and Cheng [14] obtained promising results by applying genetic algorithms. In this research a simulated annealing algorithm is proposed for solving DLP. The current workconcentrates on the basic DLP as defined by Rosenblatt [5] in order to investigate suitability and efficiency of SA for solving it. In the following sections of this paper the SA algorithm for DLP is explained then the computational results for two test problems are reported. The listing of the computer program is also supplied in the appendix for the use of researchers.